Reeves v. Southern Railway Co.

49 S.E. 674, 121 Ga. 561, 1905 Ga. LEXIS 1
CourtSupreme Court of Georgia
DecidedJanuary 27, 1905
StatusPublished
Cited by57 cases

This text of 49 S.E. 674 (Reeves v. Southern Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reeves v. Southern Railway Co., 49 S.E. 674, 121 Ga. 561, 1905 Ga. LEXIS 1 (Ga. 1905).

Opinion

Cobb, J.

■ This was an action in the city court of Atlanta, by a plaintiff, whose place of residence does not appear, against a foreign railroad corporation which is doing business in the city of Atlanta. The defendant was duly served with process accord[562]*562ing to the law of this State. The cause of action alleged is a tort to property, committed in the State of Alabama, the tort consisting of an injury to a horse which was being transported from Harrisonville, Missouri, to Atlanta, Georgia, in a car of the • defendant company. The petition did not allege that the contract of transportation was made by any officer or agent of the corporation in Georgia, or that the tort was connected in any way with orders issued by a Georgia officer or from a Georgia office of the corporation. The court dismissed the petition on demurrer for want of jurisdiction, and the plaintiff excepted.

The fact that a corporation has no existence except in legal contemplation gave rise to the- conception that its existence could not be legally recognized outside of the territorial jurisdiction of 'the lawmaking power which created it, and that therefore it was impossible for a corporation to migrate beyond the bounds of its creator. Tiffs conception resulted in the courts holding that the corporation could not be sued in a jurisdiction foreign to that which gave it existence. While under this view as a matter of theory the corporation did not migrate, yet as a matter of fact its officers and agents did; and contracts were made in its name, and wrongs committed by its officers and agents, in territory far remote from that in which it was supposed to have its only legal existence. Great hardship and inconvenience resulted oftentimes from the application of this rule, which had the effect of compelling those who sought redress for breaches of contract and other legal wrongs against the corporation to bring their actions in the courts of the jurisdiction creating the corporation; the expenses of the remedy in many cases amounting to more than what would have been the fruits of recovery. The recognition of the hardship resulting from this rule brought about a modification of the rule, to the extent that where a foreign corporation located an agent and actually transacted business in a foreign jurisdiction, it so far acquired a residence in that jurisdiction a.s to make it amenable to the processes of the courts thereof on all causes of action originating within that jurisdiction. The rule was then further modified to the extent that where the corporation had an agent and was doing business in a foreign jurisdiction, it might be sued upon any transitory cause of action by a citizen of the State in which the corporation was thus doing business. ■ And in [563]*563this country it followed from this rule that if a resident was allowed to bring this suit, any citizen of the United States would, under the constitution of the United States, have a similar right to bring suit. South Carolina Railroad Co. v. Nix, 68 Ga. 572 (2), 580; Barrell v. Benjamin, 15 Mass. 354; Cole v. Cunningham, 133 U. S. 107, 113—114. There are many years and manifold changes in economic conditions between, the old rule, which denied the right to sue a foreign corporation in personam outside of the jurisdiction of its creation, and the modern doctrine, that the question of jurisdiction and suability is not so much one of citizenship as one of finding. See Williams v. Ry. Co., 90 Ga. 522; Dearing v. Bank, 5 Ga. 497. The development of the principle was by gradual steps, and necessarily involved the overturning of many old cases. The case of Bawknight v. Insurance Company, 55 Ga. 194, was decided during the transition period and before the modern doctrine had been firmly established. It denied the right to sue a foreign corporation on a foreign cause of action. This decision seems to have heen followed in Central Railroad Co. v. Carr, 76 Ala. 388, 52 Am. Rep. 339. In the Bawknight case it is to be noted that the original record shows that the plaintiff was a resident of the State of Florida, and at that time the fact of the non-residence of the plaintiff'was by several courts considered important, some holding that on a cause of action arising in another State a non-resident plaintiff could not sue a non-resident corporation, while others held that it was within the discretion of the court to allow or refuse such right to a non-resident. The true test of jurisdiction is not residence or non-residence of the plaintiff, or the place where the cause of action originated, but whether the defendant can be found and served in the jurisdiction where the cause of action is asserted. A corporation can be found in any jurisdiction where it transacts business through agents located in that jurisdiction; and suits may be maintained against it in that jurisdiction, if the laws of the same provide a method for perfecting service on it by serving its agents. From 1845 to the present time the law of Georgia has provided that service of process necessary to the commencement of “ any suit against any corporation in any court,” with certain exceptions which are not material to this discussion, may be perfected by serving any officer or agent of such corporation, or by [564]*564leaving a cqpy of the process at the place of transacting the usual and ordinary business of such corporation, if such place shall then be within the jurisdiction of the State in which the suit is commenced. Civil Code, § 1899. The language of this section is sufficiently broad to authorize the service of process in a suit against a foreign corporation that has a place of doing business in this State. City Fire Ins. Co. v. Carrugi, 41 Ga. 660 (1), 671. There are many cases decided by this court where it either expressly or tacitly recognized that a foreign corporation may be sued in this State in personam if lawful service can be perfected upon it. See Selma R. Co. v. Lacy, 43 Ga. 461; Mayor of Macon v. Cummins, 47 Ga. 326; Nat. Bank v. Mfg. Co., 55 Ga. 36; Dahlonega Min. Co. v. Purdy, 65 Ga. 496; Central R. Co. v. Swint, 73 Ga. 651; Ala. R. Co. v. Fulghum, 87 Ga. 263; Watson v. R. Co., 91 Ga. 222; Saffold v. Mtg. Co., 98 Ga. 785, 787; South Carolina R. Co. v. Dietzen, 101 Ga. 730; Equity Life Assn. v. Gammon, 119 Ga. 276. It is true that in most, if not all, of these cases the cause of action arose in Georgia, and the plaintiff was a resident of this State; but neither of these facts was stressed as being material in any of the decisions, the jurisdiction, where the question of jurisdiction was directly raised, being maintained on the ground that service of process could be had upon the corporation for the reason that it was present in the State when it transacted business there through an agent duly authorized to represent it in reference to the business transacted, and that the statute of 1845 was broad enough to authorize service of process upon foreign corporations by serving the agent who within this State transacted the business of the corporation.

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Bluebook (online)
49 S.E. 674, 121 Ga. 561, 1905 Ga. LEXIS 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reeves-v-southern-railway-co-ga-1905.